It’s been three years since we updated our helicopter view of business meals and entertainment deductions. During this time, the One Big Beautiful Bill Act (OBBBA) was passed and the Tax Cuts and Jobs Act (TCJA) triggered various expirations.

One significant change is that most business restaurant meals with prospects and clients are not 100 percent deductible as they were back in 2021 and 2022. As of 2023, they are only 50 percent deductible.

Additionally, many business-generating entertainment deductions, such as the costs associated with playing golf with customers and prospects, were eliminated by the TCJA.

The OBBBA also carved out 100 percent meal deductions for employers that have workers on defined fishing vessels or offshore oil and gas drilling rigs.

To help you better understand the current situation, see the table below outlining what is now permissible under the law for 2026 and beyond.